23rd Jul 2025 10:30
(Alliance News) - Hochschild Mining PLC on Wednesday said gold and silver production led to "robust" cash flow in the first half of 2025, despite the ongoing suspension of its Mara Rose gold plant.
The London-based mining company targets precious metals in the Americas. Its shares were up 6.7% at 287.09 pence on Wednesday morning in London.
During the three months that ended June 30, Hochschild said attributable production totalled 81,656 gold equivalent ounces and 6.8 million silver equivalent ounces. This is 1.7% lower than 83,034 gold equivalent ounces produced the year prior, and 1.4% down from 6.9 million silver equivalent ounces.
Average realisable prices were USD2,940 per ounce of gold and USD34.4 per ounce of silver, up from the previous year's prices of USD2,291 and USD30.2 for gold and silver respectively.
During the first half of 2025, attributable production came to 161,597 gold equivalent ounces and 13.4 million silver equivalent ounces. This reflects an increase of 5.8% from 152,792 gold equivalent ounces on-year, and is 5.5% higher than 12.7 silver equivalent ounces.
Average realisable prices were USD2,832 per ounce of gold and USD33.8 per ounce of silver, up from 2024's prices of USD2,210 and USD27.0 respectively.
Hochschild's major projects are the Immaculada mine in Peru and San Jose prospect in Argentina, both of which recorded higher-than-expected tonnage during the first-half, though this was offset by lower metal grades at San Jose.
The Mara Rosa production plant in Brazil has been closed since June, when Hochschild announced a temporary shutdown due to " heavier-than-usual seasonal rainfall" and "contractor performance issues". A review of the site's output constraints is ongoing, Hochschild said, as repairs are carried out.
The company is planning to speed up operations at Mara Rosa in the second half of 2025, in the hopes of meeting its targets. Hochschild did not provide further details of when production is expected to restart, but said Mara Rosa's mining operations are "continuing as planned". The firm has appointed a new regional manager for Brazil, Ediney Drummond, to improve the site's output.
Gold production at Mara Rosa was 28,488 ounces during the first-half, versus 14,354 ounces the year prior. Hochschild will issue revised guidance for the site in its half-year report, which is scheduled for release on August 27.
The company noted that preparatory studies for another Brazilian project, Monte Do Carmo, continued during the first half.
Hochschild estimated total cash of USD110 million at June 30, up from USD97 million at December 31. Net debt at June 30 was USD203 million, reduced from USD216 million six months prior.
By Holly Munks, Alliance News reporter
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